https://www.taxtmi.com/caselaws?id=796600 Rejection of books under Section 145(3) requires material showing that accounts are incorrect or incomplete. Non-maintenance of quality-wise diamond stock particulars alone does not establish unreliability where audited books, inventory records, purchase and sales registers, vouchers and stock valuations are maintained, no specific defects or unrecorded transactions are identified, and the accounting method has been consistently accepted. A net-profit estimate must rest on a rational and scientific basis; an unsupported 3% estimation is unsustainable. The addition based on book rejection and estimated profit was deleted. en-us Fri, 31 Jul 2026 00:00:00 +0530 Fri, 07 Aug 2026 09:07:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796600 Rejection of books under Section 145(3) requires material showing that accounts are incorrect or incomplete. Non-maintenance of quality-wise diamond stock particulars alone does not establish unreliability where audited books, inventory records, purchase and sales registers, vouchers and stock valuations are maintained, no specific defects or unrecorded transactions are identified, and the accounting method has been consistently accepted. A net-profit estimate must rest on a rational and scientific basis; an unsupported 3% estimation is unsustainable. The addition based on book rejection and estimated profit was deleted. Case-Laws Income Tax Fri, 31 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796600